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RightLaugh
29th October 2007, 11:48
I currently have a reserve a/c with Cater Allen. Their rates are :

Balance Gross % p.a.* AER%**
£500000+ 5.25 5.38
£100000+ 4.8 4.91
£50000+ 4.7 4.8
£25000+ 4.6 4.7
£10000+ 4.4 4.49
£5000+ 3.1 3.14

The usual way to draw money from the company is a lowish salary (10.5K) + dividends (roughly 28K). However, the rest of the money will stay in the account for a few years to tax advantage of tax beneifts ie. taper. In that case is it not important to ensure you get the highest rate possible. I assume CA don't offer the best rates. Anyone out there have another account that can beat these rates?

Clippy
29th October 2007, 11:49
Try moneysupermarket.com

RightLaugh
29th October 2007, 11:54
Try moneysupermarket.com

tried that. Doesn't show a rate comparison.

Sockpuppet
29th October 2007, 12:22
The usual way to draw money from the company is a lowish salary (10.5K) + dividends (roughly 28K). However, the rest of the money will stay in the account for a few years to tax advantage of tax beneifts ie. taper.

Inst taper going the way of the dodo.

Natwest give me a nice % on my reserve account. Will get the rates for you.

RightLaugh
29th October 2007, 12:39
Inst taper going the way of the dodo.

Natwest give me a nice % on my reserve account. Will get the rates for you.

I don't think they beat CA.

THEPUMA
29th October 2007, 13:12
Try Investec Private Bank

Direct Reserve Issue 3:
£25,000-£49,999 5.27 4.22 5.40 4.30
£50,000-£99,999 5.37 4.29 5.50 4.38
£100,000-£249,999 5.60 4.48 5.75 4.58
£250,000-£499,999 5.79 4.63 5.95 4.73
£500,000+ 5.89 4.71 6.05 4.81

max
29th October 2007, 13:26
However, the rest of the money will stay in the account for a few years to tax advantage of tax beneifts ie. taper.

Taper relief is likely to end in 5 months, or is that what you meant with "to tax avantage"? In that case you are correct, They are to tax that advantage.

RightLaugh
29th October 2007, 14:29
Taper relief is likely to end in 5 months, or is that what you meant with "to tax avantage"? In that case you are correct, They are to tax that advantage.

Isn't there a tax advantage even if taper relief goes?

max
29th October 2007, 15:59
Isn't there a tax advantage even if taper relief goes?

Taper relief is removed, replaced with a flat 18% CGT. You'd need to compare this with what you expect to pay with dividends. ie: if you are don't go over the top tax threshold then you pay no more tax. 0%.


There are a number of rules on granting Taper relief..so not as clear cut as just applying for it, so may not be an option. There was a useful link to explain this in more detail..but I dont' seem to have to hand.

RightLaugh
29th October 2007, 16:12
Taper relief is removed, replaced with a flat 18% CGT. You'd need to compare this with what you expect to pay with dividends. ie: if you are don't go over the top tax threshold then you pay no more tax. 0%.


There are a number of rules on granting Taper relief..so not as clear cut as just applying for it, so may not be an option. There was a useful link to explain this in more detail..but I dont' seem to have to hand.

I don't believe my LTD qualifies for Taper relief as it was only incorporated 7 months ago. Still 18% is better then 40%.